Summary of the Fed's FOMC Statement and Powell's Speech: Trump's Call for Rate Cuts Has No Impact on the Fed's Work

The Federal Reserve announced that it will maintain the federal funds rate target range at 4.25% to 4.50%, marking the third consecutive time since January this year that the Fed has kept rates unchanged. The FOMC statement indicates that the committee judges the risks of rising unemployment and inflation have intensified. Inflation remains slightly elevated. The uncertainty of the U.S. economic outlook has further increased. Economic activity continues to expand at a robust pace. Powell stated that the Fed does not need to rush to adjust rates. The Fed's policy is moderately restrictive. Trump's calls for rate cuts have no impact on the Fed's work. Inflation has significantly decreased. Short-term inflation expectations have risen, while long-term inflation expectations remain aligned with the target. Survey respondents pointed out that tariffs are the main factor driving inflation expectations. The impact of tariffs has been much greater than expected so far.